China’s booming electric vehicle companies eye U.S. competitors they see as ‘not ready’

On the long list of disputes between the United States and China, electric vehicles enjoy an increasingly prominent role.

Growing stars of the auto world, EVs are also now the subject of intense commercial competition and national security concerns for the world's two largest economies.

And this metropolis known as China's Silicon Valley is at the heart of the country's bid for dominance in the lucrative global market.

Chinese companies such as BYD, the biggest global rival to America'sTesla, are forcing Western automakers to change their approach to electric vehicles if they want to remain competitive in a growing industry.

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"They're not ready," said Stella Li, chief executive of BYD Americas. "For BYD, we are ready. We are ready for technology, and we are more ready on supply chain," she told NBC News in an exclusive interview in April at BYD headquarters in the southern city of Shenzhen, where SUVs, sedans and other gleaming models are displayed in the cavernous lobby.

Despite lower price tags, Chinese EVs often have more powerful batteries and more advanced technology.

But they are not available in the U.S., where they face high trade barriers and allegations that Chinese government subsidies have given them an unfair advantage. The Alliance for American Manufacturing, an advocacy group, says the introduction of Chinese cars to the U.S. market would be an "extinction-level event" for the U.S. auto industry.

China says its edge in EVs